Norsk olje og gass Committee for Licensing Policy Meeting No. 1/2013

Transcription

1 Norsk olje og gass Committee for Licensing Policy Meeting No. 1/2013 Date: January 2013 Venue: Losby Gods Hotel, Lørenskog by Oslo Participants: LPC Members: Andrew Sharp Annelin Norenes Haaland Arnt-Eirik Rørnes Chris McLain Eivind Aarseth Erling Bergfjord Geir Lunde Gro Haatvedt John Berry John Clark Kristian Kråkenes Lars Fosvold Morten Rye Larsen Morten Sola BG Norge Limited Rocksource ASA DONG E&P Norge AS Marathon Petroleum Company (Norway) Valiant Petroleum Norge AS VNG Norge AS Concedo ASA Statoil ASA BP Norge AS RWE Dea Norge AS Norske AEDC AS Noreco Fortis Petroleum Norway AS Maersk Oil Norway AS Oskar Fjeld Skagen 44 Paul McCafferty ConocoPhillips Norge Rasmus Pedersen PGNiG Norway AS Roberto Arnez Repsol Exploration Norge Salvatore Giammetti Eni Norge AS Samuel Johnson Explora Petroleum AS Steinar Sørensen LOTOS Expl and Prod Norge AS Stewart D. Griest Chevron Norge AS Stig Ballestad Exxon Mobil Svend Erik Pettersson E.On E&P Norge AS Tina R. Olsen GDF SUEZ E&P Norge AS Tom Egeberg Bridge Energy AS Torgeir Stordal AS Norske Shell Torgeir Vinje Idemitsu Petroleum Norge AS Vegard Bruaset Talisman Energy Norge AS Vidar Bergo Larsen Petrolia Norway AS

2 Other participants: Elling Lorentsen Jan Skjervø Jan Helgesen Gaute Erichsen Espen Myhra Sissel Eriksen Anette Smedsvig Martine Linge Johnsen Fiskarlaget/Ett hav Fiskarlaget Statoil Ministry of Petroleum and Energy Ministry of Petroleum and Energy Norwegian Petroleum Directorate Ministry of Petroleum and Energy Ministry of Petroleum and Energy Administration: Turid Øygard, Bitten Lunde, Roger Pedersen, Bjørn Vidar Lerøen. Agenda: Day 1 Thursday Lunch Welcome and introduction Seismic vs. fisheries Statoil pilot - Jan Helgesen, Statoil Norges Fiskarlag experience - Jan Skjærvø Discussion Coffee break LPC members and Norwegian Oil and Gas only: The marked for multi-client seismic o Status and challenges - Arnt Eirik Rørnes, Dong o Discussion LPC Work program for 2013 Paul McCafferty, ConocoPhillips Any other business Social event sleigh ride Dinner

3 Day 2 Friday 8.30 Press release of exploration results Report from the Norwegian Oil and Gas working group Anniken Maurseth, Det norske 9.15 The annual Ipsos MMI public opinion on the issues regarding the oil and gas industry Roger Pedersen, Norsk olje og gass Dialogue with Authorities New Areas What now? - Gaute Erichsen, MPE Exploration, lisensing rounds Espen Myhra, MPE Of current interest from NPD Sissel Eriksen, NPD Discussion Lunch Minutes: All the presentations from the meeting is published on the membership part of Welcome and introduction Turid Øygard, new manager for licensing policy in Norsk olje og gass, and Paul McCafferty ConocoPhillip, new leader of LPC SG introduced themselves, welcomed the participants, and presented the agenda. Reference is made to the agenda presentation posted in this meeting s folder on the membership part of Seismic vs. fisheries Jan Helgesen, Statoil presented the 2012 mackerel pilot In the pilot Statoil held close contact with Fiskarlaget and used an independent Fishery Advisor in the dialogue between the different stakeholders. Success factors were a pragmatic approach and respect for each other s interests. If there is a need to acquire seismic during mackerel season in 2013, Statoil will continue using a Fishery Advisor.

4 Secretary General from Norges fiskarlag Jan Skjærvø presented the fishing industry in general and their experience and reflections around the mackerel pilot. We need good coexistence between the different industries, they both need to be further developed but not at the sacrifice of the other. There was a potential conflict with the fishing industry in 2012 when Statoil planned the survey, Fiskeridirektoratet asked to move the survey to another time and Statoil said no. At this point of time contact was established between Statoil and Fiskarlaget. They established close dialogue and in August the survey was stopped some days to follow the movement of the mackerel. When summing up the pilot it was said that: - Close contact between the fishery expert and Statoil was necessary to get a good result. - This was a simple pilot only one kind of fish and one oil company - This kind of survey is quite simple to handle Skjærvøy stressed the importance of: - operators and contracts flexibility, - the need to coordinate activities, - Importance to make 4D surveys when low fishing activities and - Asked for close dialogue with Fiskarlaget. Discussion The discussion stressed the fact that experience on where and when the mackerel is can be a baseline for planning, but in addition the actual movement of the fish must be considered. It was questioned if it is taboo to compensate fishers to get access, and mentioned the need for awareness also in the seismic industry. LPC members and Norwegian Oil and Gas only: The marked for multi-client seismic Status and challenges - Arnt Eirik Rørnes, Dong Presentation posted in this meeting s folder on the membership part of After the presentation there was a good discussion touching: - Who is making the multi-client seismic market now, is NPD s handling of the APA applications forcing companies to buy seismic without the wanted quality and without time to utilise the seismic lines? - To what extent is it possible for the authorities to control the market, and is that what the industry would like? - Just now, there is too much multi-client seismic in the marked, but some suggested that the market forces will regulate this - MPE has asked for concrete proposals on how to handle the issues - Different companies have different views, but there could be some common issues:

5 o Timing if there is new seismic on the marked just before applications, it cannot be utilised Decision: The SG will discuss the issue and develop a proposal to MPE LPC Work program for 2013 Proposal presented by Paul McCafferty, ConocoPhillips Description of seismic development MPE acknowledge the need for more seismic, but requested a better description (with examples) of the technological advances in recent years and the expectations for the future, both in terms of acquisition and processing, e.g. impact of broadband seismic. MPE also requested a better reasoning for the increased need for seismic. Multi-client seismic: MPE would welcome any concrete proposals from Norsk olje & gass on how this should be handled in the future, in particular for the yet unopened Barents SE area. Planning meeting Ministry of Fisheries and Coastal Affairs (MFC) have suggested to MPE that the ministries should ask for a planning meeting with the petroleum industry each spring in order to discuss the activity levels and clarify the ministries expectations, similar to the annual meeting between the MFC and the fishery organizations. Seismic map planned Project started January 2013 to initiate a common map solution on seismic activities. Decision: The SG will continue to work with this work program in Any other business: Torgeir Stordal, Shell leader of the SG in 2012, presented a wrap up from the LPC meeting with MPE in December. Before the meeting LPC made the following engagement messages that were our message to MPE: The long-term licensing policy goal should be to make all areas on the NCS available for license application, provided that an impact assessment for the area is in place. The current concessionary system with different processes for mature and immature parts of the shelf should be continues, including annual APA rounds. The license application processes should be coordinated such that overlap between Numbered rounds and APAs area avoided. The stepwise exploration of the NCS should be accelerated

6 APA areas should be expanded annually to include all areas in the vicinity of all discoveries, including currently noncommercial discoveries, and all areas where the geologic understanding is such that acreage can be awarded in a simpler procedure and without regional work. All nominated blocks should, as a general rule, be announced for application. Licenses could be awarded to one company (100 per cent) if the company wishes to explore the area on its own. The authorities could instruct the company to farm-out shares of the license to other companies prior to drilling. The license work program, deadlines and changes in deadlines for work program, should be publicized by the authorities on a continuous basis. Requirements for special competence from the operator and partners should be published before, or as a part of, the license round announcement. A list of companies with such competence should be publicized by the authorities and regularly updated. Any other business other issues mentioned: It was questioned if compensations to fisherman could solve some of the issues in the fish/seismic disputes, and mentioned that NPD used compensation in Lofoten. Statoil used Fishery Advisor in their mackerel pilot. There is not enough Fishery Advisor s available in the marked for all to use that kind of solution. Is it possible to find a common solution on this, and could Norsk olje og gass play a role? Involve the seismic industry in the on-going discussion? Learn from the mackerel pilot not to close for seismic surveys based on history but when the fish actually is present? Day 2 Press release of exploration results Report from the Norwegian Oil and Gas working group Anniken Maurseth, Det norske Anniken Maurseth gave an excellent presentation from the working group to be found on the membership part of An engaged discussion followed the presentation, especially engaged when touching volume estimates. Usually operator estimates, but if operator and partner volume estimates differs, what is inside information?

7 After a reservoir is penetrated, if there are hydrocarbons inside information is established for small companies, and the information must be handled accordingly. Then next step is to estimate the volumes, the analysis will take a few weeks. When you have conclusive information it should be disclosed, the question is when is it conclusive? Estimates are typically made in a range, but when an estimate range is changed in any direction, new inside information is created. Then the next challenge will be the appraisal phase. Handling of inside information is time consuming. The working group has discussed with Oslo stock exchange. The working group will deliver a report in a few months time, but the report will not conclude. The next step will be to make guidelines. LPC wants to participate in further discussions on this report. The annual Ipsos MMI public opinion on the issues regarding the oil and gas industry Roger Pedersen, Norsk olje og gass gave a presentation of the recent annual Norsk olje og gass survey of people s opinion of this industry. Reference is given to the presentation posted on the membership part of (Norwegian only)- Dialogue with Authorities 4 presentations posted on the membership part of New Areas What now? - Gaute Erichsen, MPE The ministers proposal for next periode in Stortinget is to start activities in earlier opened areas in Nordland VI. Local fisheries are important in Lofoten. Fish can cope with petroleum activity. The petroleum industry must find out how to coexist with the fishing industry. White paper will be presented to Stortinget on Barentshavet SE before Easter and expected to be discussed before summer holiday. The same timeline applies for the Jan Mayen white paper. MPE welcomed the comments from Norsk olje og gass and also a few of the oil companies in the hearings. Shell s comment, as a prudent operator with experience from operations under similar conditions elsewhere, was particular useful. The last opening of new areas was in 1994 so the opening of Barentshavet and Jan Mayen is regarded to be a milestone for both the industry and Norwegian government.

8 MPE and Ministry of Fisheries and Coastal Affairs (MFC)are working on a guideline describing the system regulating gathering of seismic. A coordination meeting may be arranged The planning meeting proposed under the work plan for 2013 should include information to the ministries on planned surveys with a conflict potential. LPC is asked to propose a sensible way and propose when and who. Paul McCafferty commented that these surveys include commercial issues, and that this plans are not shared among the companies. MPE answer: Think hard and find a way to plan better. Exploration, licensing rounds Espen Myhra, MPE MPE has experiences tactical relinquishment upfront new APA rounds, and this have led to changed policy from MPE. The 23rd round is expected to include new areas. MPE is open for proposals on timing and process now, but they will go for a stepwise approach. In December 2012 Norsk olje og gass presented their engagement messages to MPE, Espen Myhra commented on some of the messages: - On overlap in timing between Numbered rounds and APAs MPE agrees that one should try to get different timing, one solution could be to have deadline on AFA around summer and licensing round about New Year. - MPE is not in favour of the idea of Licenses awarded to one company (100 per cent) if the company wishes to explore the area on its own. The Ministry must be convicted to support 100 per cent licence s.. - MPE told that NPD publish the work programs from a date. - The question of publishing who has special competence on HT/HP the qualification requirements is well known, and if there is a need for a list this could be handled by Norsk olje & gass. MPE asked Norsk olje og gass to provide them with a list including and phone numbers to the exploration managers to shorten the time used in handling the applications in the rounds. MPE find this kind of dialogue with the LPC very useful. On speculative seismic, MPE should not be involved in commercial processes or regulate the marked. MPE is aware of the cost issue of raising numbers of surveys. MPE asked for input from Norsk olje og gass.

9 One a question on changed policy favouring Petoro, the answer was that favouring Petoro is the policy, this is not new. Of current interest from NPD Sissel Eriksen, NPD The two white papers to be presented to Stortinget around Easter will include new resource estimates for Jan Mayen and Barents S E. In May 2013 NPD plans to publish a new Resource report with updated estimates on undiscovered resources. NPD told that the applications are of high quality, but asked for feedback on whether the guideline gives room to show the competitive edge. The maps in the presentation show where NPD has acquired seismic. The industry will be offered to buy it in one packed. NPD wants communication with the industry for instance on how to handle the questions on spec seismic, and would also like to get the exploration managers list.